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Definition

SBTi Corporate Net-Zero Standard

The SBTi Corporate Net-Zero Standard sets criteria for companies to validate, implement and assess science-based targets that cut Scope 1, Scope 2 and Scope 3 emissions to residual levels and neutralise what remains.

What is the SBTi Corporate Net-Zero Standard?

SBTi published the Standard in June 2026. Companies submitting in 2026 use Version 1.3.1. Version 2.0 opens in Q1 2027 and becomes mandatory after 31 January 2028. See how science-based targets are validated.

Why does it matter to you?

A customer may ask for your status, coverage, category, plan and progress. Any company averaging €450 million consolidated net turnover or 1,000 full-time-equivalent employees across its two latest financial years is Category A. Extra tests apply when the ultimate parent is incorporated in a World Bank high-income country. Companies meeting no Category A test are Category B.

How does it work?

CNZS-C6 treats an SBTi-listed value-chain activity as significant at 5% of Scope 3 emissions. Category A must apply this test; Category B may choose it.

The hierarchy starts with direct cuts, then shared-system action, and sector action only under documented structural constraints. Market instruments may support action but do not replace cuts in the physical inventory.

Best efforts means using available levers and reporting dependencies, barriers and responses. Ongoing Emissions Responsibility recognition is optional until 2035. CNZS-C45 signals a post-2035 Category A removal requirement, subject to Version 3 review. Net-zero targets still require residual-emissions neutralisation.

What mistakes should you avoid?

  • Claiming Version 2.0 validation before submissions open.
  • Using Category B without testing the consolidated thresholds.
  • Counting credits or market instruments as direct emissions cuts.
  • Treating best efforts as permission to omit barriers or action.

Does every company need an SBTi net-zero target?

No. The overarching target is optional. If you choose one, CNZS-C17 requires near-term and long-term targets across all three scopes plus residual neutralisation.

What should you send when a customer asks about the Standard?

Send the target wording, validation status, category assessment, base-year inventory, coverage, transition plan and progress report. State assumptions, dependencies and barriers.

Example

Hypothetical South African steel fabricator: Suppose its ultimate parent is incorporated in South Africa. Across its two latest financial years, the group averages €300 million consolidated net turnover, 800 full-time-equivalent employees and 40,000 tCO2e of combined Scope 1 and Scope 2 emissions. South Africa is an upper-middle-income economy, so the high-income-country tests do not apply. The group is below the any-country thresholds of €450 million turnover and 1,000 employees, making it Category B for this check.

The company reports 100,000 tCO2e of Scope 3 emissions, including 6,000 tCO2e from upstream steel production. The share is 6,000 ÷ 100,000 = 6%. If it applies the optional Category B emissions-intensive-activity criteria, steel exceeds the 5% significance test and must be reported as a significant emissions-intensive activity. SBTi confirms the category at registration and validation. No emission factor is used.

Where it comes up

SBTi company categorization, inventory coverage and emissions-intensive activity testCorporate Net-Zero Standard V2.0, Table 2, pages 14-15; CNZS-C5.2, page 24; CNZS-C6.1-C6.5, page 26 (checked 2026-08-20)Official sourceSBTi target separation, net-zero boundary and residual-emissions neutralisationCorporate Net-Zero Standard V2.0, CNZS-C9.1, page 31; CNZS-C17.1-C17.4, page 43 (checked 2026-08-20)Official sourceSBTi implementation hierarchy for activity, activity-pool and sector actionCorporate Net-Zero Standard V2.0, CNZS-C21-C25, pages 49-52 (checked 2026-08-20)Official sourceSBTi best-efforts progress assessment and Ongoing Emissions ResponsibilityCorporate Net-Zero Standard V2.0, section 5, pages 60-64; CNZS-C38-C45, pages 66-76 (checked 2026-08-20)Official source

Related terms

Science-Based Targets

A science-based target states how quickly a company will cut greenhouse gas emissions in line with a climate pathway accepted by the Science Based Targets initiative (SBTi), using a defined boundary, base year and target year.

Net-Zero

Under the SBTi Corporate Net-Zero Standard, net zero means deeply cutting greenhouse gas emissions across a company's value chain, then permanently neutralising the small amount that remains.

Scope 3 Emissions

Scope 3 emissions are the indirect greenhouse gas emissions from goods, services, transport, product use, investments, and other upstream and downstream activities outside your company's Scope 1 and Scope 2 boundary.

Climate transition plan

A climate transition plan turns a climate target into dated actions, assigned resources, governance, financial assumptions, and progress measures for changing a company's strategy and business model toward a lower-carbon economy.

Sources

  • Science Based Targets initiative

    Version 2.0 company categories, target coverage, EIA criteria, implementation hierarchy, best-efforts treatment, ongoing emissions responsibility and residual neutralisation

    2026-08-20

  • Science Based Targets initiative

    Version 2.0 publication, 2026 use of Version 1.3.1, Q1 2027 opening and 31 January 2028 transition deadline

    2026-08-20

  • World Bank

    Current income-group classification used to confirm that South Africa is not a high-income country in the worked example

    2026-08-20

Last verified 2026-08-20

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SBTi Corporate Net-Zero Standard Definition | Keslio